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| Topic: |
English
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| Number of pages / Number of words: |
5 / 1234 |
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They argue that this "ripple effect" causes more money to flood the market, and in turn boost the economy. They argue that because people will now have more money in their pocket, they will spend more money. However, this is not always the case. Consider the first term of George W. Bush's presidency when he made a tax cut to "jump start" the economy...
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Consider the first term of George W. Bush's presidency when he made a tax cut to "jump start" the economy. The idea was to put more money in pockets of Americans, because if they had it they would spend it. It was quickly realized that a large number of people were putting this tax cut to savings. Just because people have more money does not mean they will spend it...
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